13, 2013, 7:31 AM 4,385 28 Email Share on Tumblr A common view we’ve heard on Fox News is that breaching the debt ceiling wouldn’t mean a default, because the US has more tax revenue coming in every day than it has to pay in interest payments. So as long as you prioritized interest payments first, you should be fine not defaulting on the debt. Fox News political analyst Brit Hume was making this point on Twitter, as well . There are three problems with this view.
This article has been curated from This Chart Destroys The ‘Fox News’ View Of The Debt Ceiling
With spending holding in line with estimates, California ended the first quarter of its fiscal year on track with estimates contained in the 2013-14 Budget Act. September saw total revenues move past expectations by $427 million, or 5.3%. Personal income taxes, which are California’s dominant revenue source, lurched past monthly projections by 9.5%. … Retail sales tax receipts also beat budget estimates by close to double digits in September, as California consumers resumed shopping with the support of more jobs, higher home prices, and a rising stock market … California has completed the first leg of the fiscal year with a good pace. Both revenues and state spending have stayed close within their designated lanes, almost exactly matching estimates contained in the 2013-14 Budget Act. Revenue collections could be challenged in the coming months by any negative developments related to jobs, interest rates, stock prices, and home values.
This article has been curated from The Federal Government Is Screwing Things Up Just As One Major Economic Problem Was Going Away